RISK MANAGEMENT IN TELECOMMUNICATIONS SERVICES IN BOSNIA AND HERZEGOVINA

Abstract

The issue of risk management has in the last few decades become an increasingly important aspect of every company’s business activities. Such views are more and more present in the service sector whose GDP share has registered a continuous growth within both, national economies and on the global level. Intangibility and some other specific features of services when compared to physical products require a different approach to the activities in the field of risk management, particularly when it comes to capital intensive services such as telecommunications. This type of services is mainly provided within large companies that need to pay attention to the risk management process, from their identification, risk evaluation to selection and application of the appropriate risk management method. Risk management methods include a group of methods for the physical control of risk and a group of methods for risk financing by means of risk retention or insurance. All these methods can be applied on a wide set of personal, property and liability risks met by the companies and employees in the telecommunications sector. The paper attempts to present an overview of the specific features of risk management in the companies in the telecommunications sectors with the case study of the leading telecommunications service provider in Bosnia and Herzegovina.

Keywords: Risk, risk management, insurance, accidents, telecommunications services, Bosnia and Herzegovina